The Central Bank of Nigeria (CBN) has revised ATM transaction fees, introducing a ₦100 charge for withdrawals from other banks' ATMs and allowing operators to add surcharges of up to ₦500 on off-site machines. The changes come as new data shows PoS transaction volumes fell by nearly 20% in the first quarter of 2026, signaling a shift in how Nigerians access cash.
New ATM Charges Under the Revised Framework
Under the CBN's revised ATM transaction-fee framework, withdrawals from a customer's own bank ATM remain free. However, customers using another bank's ATM face a ₦100 charge for every ₦20,000 withdrawn from an on-site ATM. For off-site ATMs, the same ₦100 charge applies, but the ATM operator can impose an additional surcharge of up to ₦500 per ₦20,000 withdrawal. The surcharge must be disclosed to customers before they approve the transaction.
The CBN said the review was driven by rising operating costs and the need to improve the efficiency of ATM services while encouraging greater investment in ATM infrastructure. The revised charges took effect from March 1, 2025.
PoS Agents Face Tighter Regulations as Volumes Drop
While ATM users have faced revised charges, PoS operators have also come under tighter regulatory controls. CBN agent-banking rules have restricted how agents operate, including requirements around terminal providers, operating locations, and transaction limits.
The changes come as the latest CBN data show PoS transaction volumes falling sharply. In Q1 2026, Nigerians carried out 2.92 billion PoS transactions, down 19.9% from the previous year. The value of those transactions also fell 16.4% to ₦59.3 trillion.
ATM Activity Rises as Consumers Shift Preferences
ATM activity moved in the opposite direction. ATM transactions rose 6.6% year-on-year to 438.6 million during the same period, while their value jumped 64.6% to ₦26.3 trillion, according to TechCabal.
The shift comes after years in which PoS agents became one of Nigeria's most important channels for accessing cash. During the 2023 cash crisis, millions of Nigerians relied heavily on agents because bank branches and ATMs struggled to meet demand.
But the CBN has since taken steps to strengthen the formal ATM network. In March 2026, the regulator issued new ATM guidelines covering deployment and operations, while requiring card issuers to deploy at least one ATM for every 7,500 payment cards issued over the next three years.
What the Changes Mean for Nigerians
At the same time, the CBN's cash policy allows individuals to withdraw up to ₦500,000 weekly across channels, although ATM withdrawals are capped at ₦100,000 daily. Withdrawals above the weekly threshold attract excess withdrawal charges, according to a report by BusinessDay.
For customers, the cost of accessing cash increasingly depends on where they withdraw. Using your own bank's ATM remains the cheapest option because there is no CBN-prescribed charge for an on-us withdrawal. Using another bank's ATM can attract fees, while off-site machines may carry an additional surcharge.
The latest transaction figures suggest these changes are unfolding alongside a broader shift in consumer behaviour. PoS agents remain vital, particularly in neighbourhoods with limited banking infrastructure. But rising ATM usage indicates that banks may be gradually reclaiming some of the cash-access market they lost to agents.
With the CBN simultaneously regulating agent banking and encouraging stronger ATM infrastructure, Nigeria's cash economy could be entering a new phase where convenience, availability, and transaction costs determine whether customers choose an ATM or a PoS terminal.
